The move would put Sony in direct competition with satellite and cable services, as well as online TV providers such as Google TV and Dish.

This is not the first time reports of a Sony web TV venture have emerged. The company was allegedly planning on distributing programming content for its connected TV customers in 2011, but the current project is said to be more comprehensive.

The launch of an online TV service could help Sony sell more of its connected hardware, such as the PlayStation 3, Bravia television sets and Blu-ray players with the promise of new content for customers to try out.

Sony is yet to officially confirm its plans to launch a web-based TV service.